[
Best Practices in Vendor MSDS Data Management
for SAP EHSM
Eric Schmidt, Manager, Systems Development, Lincoln Electric
Dan Iskra, Global EHS Engineer, Lincoln Electric
Connie Prostko-Bell, Sr. Solutions Manager, 3E Company
[ Agenda
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Introductions
Hazardous Substance Management in SAP EHSM
Vendor Compliance Data in SAP EHSM
Automating Vendor Data Change management
Plugging functional shortcomings in standard SAP EHSM
Solution Benefits
Roadmap
Real Experience. Real Advantage.
2
[ Learning Points
 Vendor Product Data is critical to compliance and supply chain
risk management
 Maintaining current data is vital and difficult
 Obtainment services and complementary functionality are
needed for a full solution
Real Experience. Real Advantage.
3
[ About the Speaker
Connie Prostko-Bell
Director, Supply Chain Compliance Data Solutions
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•
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Currently focused on developing 3E’s content and services in support of
Supply Chain Compliance Programs
With 3E Company for 3.5 years, 15 years focused in the Environmental
Management Information Systems (EMIS) space
Education: B. Sc. Environmental Science, WVU
Real Experience. Real Advantage.
[ 3E Company
Corporate Headquarters
Carlsbad, CA
International Operations
Copenhagen, Denmark
Montreal, QC, Canada
Global Research
Bethesda, MD
MSDS Authoring Services
Kingsport, TN
Field Sales & Account Management Presence
US, Canada, Europe & Japan
Wholly owned by Verisk Analytics – The Science of Risk
Real Experience. Real Advantage.
[ About the Speaker
Eric Schmidt
Manager, Systems Development
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Currently focused on supporting Lincoln Electric’s implementation of the
SAP EHSM as the IT project manager. Additional responsibilities include
managing production support for SAP FICO and Business Warehouse
modules and project management for various small application
implementations and rollouts of SAP to subsidiaries.
Prior Experience: Eric’s previous experience includes managing Lincoln
Electric’s internal IT audit program. It also includes IT project
management and IT audit management at several additional employers
including Deloitte.
Education: MBA, The Ohio State University
B.A., Earlham College
Real Experience. Real Advantage.
[
About the Speaker
Dan Iskra, CHMM, REP
Global EHS Engineer
•
•
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Currently focused on supporting Lincoln Electric’s implementation of the
SAP EHSM as the primary end user. Additional responsibilities include
assessment and support of LE’s Global Operations regarding
Environmental, Health and Safety regulatory compliance and strategic
initiatives.
Prior Experience: Dan’s previous experience includes Environmental
Engineering at General Motors. He also has experience in Environmental
Remediation Project Management, Emergency Response, Hazardous
Waste and Dangerous Goods Management and implementing EHS
Regulatory Compliance programs.
Certifications: Certified Hazardous Materials Manager
Registered Environmental Professional
Education: B.Sc. Environmental Science, BGSU
Real Experience. Real Advantage.
Lincoln Electric
World-Class Arc Welding and Cutting Products
Virtual and Automated welding
MIG & TIG consumables
Welding
Consumables
65%
Power
PowerWave
Wave®
AC/DC
AC/DC1000
1000® SD
Soldering
and
Brazing
alloys
Welding
Equipment
35%
Stainless, Nickel & High Alloy
consumables, Submerged Arc,
Stick Electrodes
Welder/Generator –
Engine Drive
Fume extractor
CNC Cutting
System
Plasma cutter
8
Gas regulators, welding
guns and torches,
accessories
Flux-Cored Wire
Lincoln Electric: Dynamic and Evolving Company
44 Manufacturing Facilities in 20 Countries
CLEVELAND, OHIO
MISSISSAUGA, CANADA
GLOBAL HEADQUARTERS
DZIERZONIOW, POLAND
Consumables
CLEVELAND, OHIO
TORONTO, CANADA
ESSEN, GERMANY
REGIONAL HEADQUARTERS
North America
Equipment & Consumables
Pipe Mill Welding Systems
RENO, NEVADA
LOS ANGELES, CALIFORNIA
CNC Cutting Equipment
Gas Apparatus
SAN DIEGO, CALIFORNIA
CLEVELAND, OHIO
NIJMEGEN, NETHERLANDS
Equipment, Consumables
& Automation
Consumables
BALTIMORE, MARYLAND
BIELAWA, POLAND
LUAN COUNTY, CHINA
Equipment
Consumables
JINZHOU, CHINA
Consumables
Consumables
Consumables
Consumables
TIJUANA, MEXICO
MASON, OHIO
SHEFFIELD, UNITED KINGDOM
Consumables & Accessories
Consumables
Consumables
TORREON, MEXICO
GAINESVILLE, GEORGIA
CHERTSEY, UNITED KINGDOM
Equipment & Consumables
Gas Apparatus
Consumables
MEXICO CITY, MEXICO
ROUEN, FRANCE
Consumables
Consumables
AREZZO, ITALY
Consumables
GENOVA, ITALY
SHANGHAI, CHINA
Equipment
Equipment & Consumables
SHANGHAI, CHINA
LISBON, PORTUGAL
REGIONAL HEADQUARTERS
Asia Pacific
Consumables
BARCELONA, SPAIN
BOGOTA, COLOMBIA
Consumables
MARACAY, VENEZUELA
Consumables
REGIONAL HEADQUARTERS
Europe, Middle East,
Africa & Russia
GUARULHOS, BRAZIL
Consumables
SAO PAULO, BRAZIL
REGIONAL HEADQUARTERS
North America
Cleveland, Ohio USA
Brazing Consumables
CHENNAI, INDIA
Consumables
JAKARTA, INDONESIA
Consumables
SYDNEY, AUSTRALIA
Consumables
SAO PAULO, BRAZIL
South America
Sao Paulo, Brazil
Headquarters
Europe, Middle East, Africa & Russia
Barcelona, Spain
Manufacturing
Asia Pacific
Shanghai, China
Sales Offices
9
NANJING, CHINA
ISTANBUL, TURKEY
REGIONAL HEADQUARTERS
Harris Products Group
Harris Products Group
Mason, Ohio USA
Consumables
Consumables
MASON, OHIO
GLOBAL HEADQUARTERS
Lincoln Electric
Cleveland, Ohio USA
ZHENGZHOU, CHINA
MTSENSK, RUSSIA
Automated Welding Systems
Pipe Cutting Equipment
Consumables
Consumables
MENTOR, OHIO
SAN DIEGO, CALIFORNIA
OREL, RUSSIA
Consumables &
Gas Apparatus
REGIONAL HEADQUARTERS
South America
Sales: $2.7 billion (2011)
Employees: ~10,000
SAP Rollout Progression
1999 - USA and Canada
• SAP 3.1h
• 3 companies
• 5 plants
• 1040 users
Current - 9 Countries
• ECC 6.0 Ehp4 SP2
• 22 companies
• 21 plants
• 2500 users
“An important part of our global expansion
involves the implementation of SAP worldwide
as we make further acquisitions or build new
sites. Introducing SAP promotes consistent and
efficient sharing of information throughout our
entire global organization.”
John Stropki, Chairman, President & Chief
Executive Officer, Lincoln Electric Holdings, Inc.
10
SAP Rollout Progression
11
Additional SAP Component
Year
Business Warehouse
2000
Human Resource Management
2001
Customer Relationship Management (Mobile Sales)
2004
Employee Self Service
2005
Environmental Compliance CfP (RoHS & WEEE)
2006
Warehouse Management
2008
Upgrade SAP 4.7 Enterprise to ECC 6.0 Unicode
Environmental Health and Safety (Product Safety
and Dangerous Goods)
2009
2012
[ Hazardous Substance Management
 Refers to vendor products used as raw materials or non-process chemicals
 Enables safe handling and tracking of hazardous substances that exist in
designated areas of the enterprise
 Allows you to track substance quantities for regulations by maintaining the
composition of raw materials (SARA)
 Allows you to create exposure profiles in IHS
 Enables material master -hazardous substance relationship for manufactured
products
 Supports both enterprises that manufacture and sell hazardous substances
and those that use hazardous substances they purchase
 Creates and maintains a hazardous materials exposure log for the
manufacturing site(s)
 Manages received MSDSs
Real Experience. Real Advantage.
[ Hazardous Substance Master
 As of SAP ECC Enterprise
Extension PLM 6.0 (EA-PLM
600), the hazardous
substance master is available.
 transfer hazardous substance
data (using filling) from
specification management to a
Haz Sub Master
 Distribute data from the
hazardous substance master in
the ERP system to Supply
Chain Management systems
(SCM systems) that do not
contain specification
management.
Real Experience. Real Advantage.
[ Why is VMSDS necessary?
 Missing pieces in
standard HSM
functionality
 Mass loads are labor
intensive
 No automated means of
monitoring changes and
maintaining data
 No integrated
obtainment services
mechanism
Real Experience. Real Advantage.
CG36
[Two-step Process to Load into SAP
Initial VMSDS Load
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An option to load MSDSs via DVD (for large volumes)
or via the Internet (for small volumes)
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Includes implementation services (SAP EHS
customization, VMSDS installation, mapping, and
loading)
VMSDS Updates
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Reduce workload by loading only changed MSDSs
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Update documents and meta data in SAP EHS by just
clicking a button

Review VMSDS and select the best fit for the business
Real Experience. Real Advantage.
[The Process
Lincoln Electric
SAP
MM
Material
Inventory
MSDS
Authoring
SAP
EHS
SAP
SD
MSDS
Distribution
Real Experience. Real Advantage.
Initial Load (low volumes or document
e-links only):
• Create a list of products in SAP EHS
• Request data for the list of products
• Response with requested MSDSs and
metadata
• Store MSDSs and meta data in SAP
VMSDS
App.
Internet
Web
Service
Data Update:
• Request a list of impacted products
• Response with the list of impacted
products (changes in metadata and/or
MSDS)
• Follow the initial load scenario for the
hit list
3E Company
MSDS database:
•
Real Substance ID
•
(M)SDS
•
Language
(M)SDS
Catalog
Metadata may include:
•
Material/Product Name
•
Manufacturer
•
Revision Date
•
Flash Point
•
Boiling Point
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Density
•
pH
[ Lincoln Electric’s Legacy Incoming MSDS Process
 6,000 Material Safety Data Sheets (MSDS) must be manually
maintained, while product formulations must change dynamically in
response to raw material supplies.
 There is no query capability at the substance data level because MSDS
are in PDF format. So, material use and composition information is
inaccessible.
 Does not support ‘where used’ analysis or Superfund Amendments
and Reauthorization Act (SARA)/Toxic Substance Control Act
(TSCA) reporting functions.
 Secondary container labels are inefficient to maintain.
Real Experience. Real Advantage.
[ The Value of VMSDS Functionality to Lincoln Electric
 Integration:
 Seamlessly integrates 3E Online Vendor SDS meta-data directly into
SAP EHSM
 Data Consolidation:
 Centralized in SAP EHSM with correlation to SAP Supply Chain
Management
 Enhanced Accuracy:
 CAS level composition supports pinpoint Substance Volume Tracking
for accurate threshold determination
 Streamlined Efficiency:

SAP EHSM Transitions vs. Manually extracting and analyzing data from
fragmented databases
Real Experience. Real Advantage.
[ Lincoln Electric’s VMSDS Data Analysis
 SAP Transaction: CBIHSR01 = SARA 311 & 312 Tier II
 CAS level composition
 to support EHS threshold determination (500 lbs. or TPQ)
 SARA Hazard Categories
 Immediate (Acute), Delayed (Chronic), Fire, Reactive,
Sudden Release of Pressure
 Purity and State
 Pure vs. Mixture; Liquid, Solid, Gas
 Inventory
 Maximum and Average Daily Amounts
 By Plant and Storage Location(s)
 (M)SDS PDF
Real Experience. Real Advantage.
[ Lincoln Electric’s VMSDS Data Analysis
 SAP Transaction: CBRC20 = SARA 313 TRI
 CAS level composition
 Support threshold determination
 Extrapolates Purchases and Material Movements down to
the CAS composition Level
Real Experience. Real Advantage.
[Benefits of Lincoln Electric’s MSDS Online/VMSDS Approach
•
Wider range of hazard & environmental communication enabled by
– Electronic metadata of complete chemical inventory
• HMIS Rating, Hazardous Ingredients Composition, (GHS
Classification when released)
– Comprehensive new chemical approval process (which includes
supplemental material use information gathering.)
– Ability for EHS staff to query database and complete a wide range of
critical detailed analyses
•
Enhanced environmental reporting
– Integrated in SAP with supply chain through Substance Volume
Tracking
•
Consolidated functions in single system
– MSDS Obtainment and Document Management
– HMIS labeling
•
24-7-365 Hotline Support
Real Experience. Real Advantage.
[Lincoln Electric’s Roadmap
Chemical Information System Project
Real Experience. Real Advantage.
[ 3E Roadmap
 3E’s Supply Chain Compliance Solution Roadmap
 Currently obtaining, maintaining and pushing SDS documents and
metadata for Vendor Products into SAP EHSM and SAP MM
 Can obtain and manage other risk related documentation such as
REACH Compliance Certificates, Halal or Kosher Certifications,
Material Declarations, Tech Sheets.
 Supplier Portal along with Manufacturer Relationship Specialists
facilitate collection of Supply Chain Data
 Ability to share information with stakeholders and provide
compliance assurance with or without full disclosure
Real Experience. Real Advantage.
23
[
]
 Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the
Year-Round Community page at www.asug.com/yrc
[
Real Experience. Real Advantage.
SESSION CODE:
2902
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